CTS Beats On Q2 Earnings, Expands Margins, Raises FY21 Guidance - CTS (NYSE:CTS)

CTS Corp CTS reported second-quarter FY21 sales growth of 54% year-on-year to $129.6 million, beating the analyst consensus of $121.9 million. The Sensor Scientific acquisition added $1.6 million of sales.
Sales to transportation customers increased 88% Y/Y, and other end markets grew 26% Y/Y.
New business wins were $174 million.
The gross margin expanded 525 basis points to 36.8%, and the operating margin expanded 847 basis points to 15.9%.
Adjusted EPS of $0.52 beat the analyst consensus of $0.38.
CTS generated $18.7 million in operating cash flow and held $117.4 million in cash and equivalents.
It continues to advance diversification strategy by growing in the industrial, medical, and aerospace and defense end markets, enhanced by more substantial new business wins in a challenging supply chain environment.
Outlook: The company raised FY21 sales guidance from $445 million– $500 million to $480 million – $500 million compared to the analyst consensus of $490.3 million.
It increased the adjusted EPS from $1.35 – $1.70 to $1.70 – $1.90 above the analyst consensus of $1.56.
Price action: CTS shares closed lower by 0.24% at $33.96 on Monday.